CNBC_ The Japanese yen rose sharply against the US dollar during Thursday's trading, benefiting from investors flocking toward safe-haven assets amidst escalating concerns over declining stock markets, surging oil prices, and the war in the Middle East, alongside growing doubts regarding future returns on artificial intelligence investments.
Chris Scicluna, Head of Economic Research at "Daiwa Capital Markets," stated that artificial intelligence, oil prices, and the situation in France are unsettling markets, noting a clear state of risk aversion, according to Reuters.
Brent crude surged to its highest levels since May following new attacks on Saudi Arabia, raising fears of further escalation in the Middle East and disruption to oil supplies from one of the world's most critical exporting regions.
The Japanese yen rose by 0.51% to 157.33 yen per dollar, heading toward recording its strongest daily gains in about a month.
The Swiss franc, another key safe-haven currency, stabilized at $0.824, virtually unchanged.
Conversely, the US Dollar Index, which measures the performance of the US currency against a basket of major currencies including the yen, rose by 0.14% to 101.82 points.
The euro declined by 0.3% to $1.1198, pressured by concerns over France's financial situation and social unrest, which overshadowed fears related to the artificial intelligence sector.
French President Emmanuel Macron pledged to prevent a recurrence of the violence experienced by the country over the weekend, describing comments made by some foreign leaders regarding those events as "foolish" and "unacceptable."
Concerns regarding France's ability to manage its high debt burden exerted pressure on French government bonds, while anxieties extended to other Eurozone countries facing high debt levels.
The spread between French and German 10-year bond yields reached approximately 177.7 basis points, the highest level since 2011.
Regarding other currencies, the British pound declined by 0.18% to $1.337, and the Australian dollar fell by 0.21% to $0.7012 US dollars.
In the cryptocurrency market, Bitcoin dropped by 3.20% to $81,929.
